Charities need an Independent Examination (rather than audit) if your gross income is:
- Between £25,000 and £1,000,000 where your gross assets do not exceed £3,260,000; or
- Between £25,000 and £250,000 where your gross assets do exceed £3,260,000
Charities with an income not exceeding £25,000 are not required by law to have an Independent Examination but may elect to do so.
The work carried out for an Independent Examination is less than an audit. The work is largely based on review of the figures and agreeing key balance sheet balances such as the bank balance. In a audit we will select sample transactions and agree these to supporting documentation. In an audit report we state a positive opinion that in our opinion the accounts show a true and fair view. An Independent Examination has a more negative opinion.
Consequently, the Independent Examination is cheaper than an audit and may be seen as sufficient by the trustees.
If income over £250,000 the trustees must appoint an examiner who is a member of one of the accountancy bodies listed in the Charities Act 2011, as amended by Orders.
Get in touch to speak to one of our independent examination specialists.
